2nd Home

[peggysioux]

Taxpayer wants to add daughter's name to deed for his second home so that when he passes the home can go to daughter without going through probate. Would a gift tax return need to be filed when her name is added? If so, would 50% of the FMV be considered the gift to daughter?

[ChEAr$]

Taxpayer wants to add daughter's name to deed for his second home so that when he passes the home can go to daughter without going through probate. Would a gift tax return need to be filed when her name is added? If so, would 50% of the FMV be considered the gift to daughter?

Right; 50% of FMV. If a gift tax return is required, then both this number AND half house's cost are needed for the form.
The FMV # is used just for the 709, but tax basis is 1/2 of cost (plus improvements of course). Then when father kicks the bucket, and she inherits the other half, that half is stepped up to 1/2 FMV at that future time.